India mulls easing restrictions on Chinese investments

India is considering a relaxation of its stringent investment rules for Chinese companies, focusing on non-sensitive sectors such as solar panels and battery manufacturing, according to government sources on Wednesday.

The move aims to bridge the gap in domestic manufacturing capabilities and potentially boost economic ties between the two nations.

The decision comes amid a backdrop of strained relations following border clashes in 2020, which prompted India to tighten scrutiny on Chinese investments.

While sensitive sectors like electronics and telecom will continue to face restrictions, the government is exploring a case-by-case approach for other areas.

Finance Minister Nirmala Sitharaman has publicly supported better economic ties, and Chief Economic Adviser V. Anantha Nageswaran has advocated for attracting Chinese foreign direct investment (FDI) to enhance India’s exports.

The relaxation of investment rules could unlock billions of dollars in potential Chinese investment that has been stalled for the past four years.

Additionally, India is considering easing visa restrictions for Chinese technicians to facilitate smoother business operations.

Attribution: Reuters